Penzance Acquires Luxury Apartment Community in Dulles Technology Corridor

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Penzance has acquired The Mark, a 169-unit, luxury mixed-use apartment community in Herndon, Va., from Bet Investments, according to the buyer.

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According to public records, the sales price was $50.5 million.

“Penzance is a strong believer in the Northern Virginia market and is seeing signs of economic growth on the Toll Road, in particular due to drivers like cybersecurity, cloud computing and defense technology,” Cristopher White, Penzance’s managing director of investments, told Commercial Observer. “In addition, the proximity to the future Innovation Center Metro Station will make the area more desirable with better connectivity to other Silver Line markets — such as Reston Town Center and Tysons — and the rest of the D.C. metro area.”

Located at 2323 Dulles Station Boulevard, in the Dulles Technology Corridor, the property was built in 2005 and acquired by Bet Investments in 2014.

This is the latest deal for the Penzance D.C. Real Estate Fund, which closed in October 2018 with total equity commitments of $255 million. Penzance expects to target a portfolio size of $800 million to $1 billion of total capital for the fund. 

Penzance has ownership interests in multiple properties near future Silver Line stations. It acquired the Spring Park office park at 450-485 Spring Park Place, 380 Herndon Parkway and 400 Herndon Parkway for $72 million, which CO wrote about in September.

According to White, the company expects the overall submarket to continue to grow and the future metro stations to be central hubs as the growth continues.

At the end of 2019, Penzance’s plans for renovations to the property were still being finalized.

“The building is already high-end with great amenities and modern finishes,” White said. “We expect our plans will involve slight enhancements to continue to meet the evolving demands of our tenants.”

Notable retail tenants on the ground floor include Neo Smiles Dental, Kabobi by The Helmand and Edward Jones Investments.

IRG’s Jeff Kim and Allen Manesh represented Penzance in the off-market transaction. The seller did not utilize a broker.